When the job books were thick, it seemed like everyone wanted to be a contractor, licenses were flying out of state offices like pigeons after a gunshot. Now that the jobs are spread rather thin, many contractors are getting nervous, even considering closing up shop. But there are benefits to sticking it out for the long haul. Unfortunately these benefits may take years to manifest, requiring a professional leap of faith, but are real nonetheless for many veteran contractors.

There’s a first time for everything, and this isn’t it.

It is important to remember, no matter how bad a recession gets, that this is not the first go round. Veteran contractors — those who’ve been at it for 20-30 years — have been through times like this. And they’ve stuck it out. It is the reason they call it “building” years in the business. We cannot always coast as we did before the housing bubble popped, but it is important to stay active regardless of the market.

The building never stops, but if there is a shortage of homes to build then it is time to work on building the business. Most longtime remodeling contractors will tell you that a big portion of their client list and their friend list is interchangeable. Lean times are great for building a relationship, building trust with clients.

The first contractor I ever worked for had no sign on the side of his trailer. No T-shirts. No advertisements in the newspaper. The only place he’d ever placed an ad was in his church bulletin. He believed firmly in word of mouth and building a rapport with homeowners. He will drive (and has driven — I was there) 25 miles to fix a screen door. He loved and trusted his craftsmanship and let it carry him through tough times. Even after 30-plus years as a contractor, and despite one of the worst economic crises ever to face our country, he still works. (more…)

This may be one of the scariest New Years on record for business owners. The downward trend in housing and retail continues and even the President admits that it will likely get worse before getting any better. While times aren’t looking too dark for remodeling contractors, it may be time to cinch the proverbial belt a bit.

That may translate into a reassessment of company goals. Setting goals is essential to a successful business, especially in the hardest of times. Simply set feasible goals.

If your goal is to top last year’s sales or profits, you must ask yourself if that really is the wisest goal in the midst of an economic slump that has spread well beyond the housing industry alone. Instead, calculate what money you need to make, what items you can do without or must have, and a few reasonable perks you want to give yourself or your employees. Then figure out how you go about getting those things, whether it be a dollar amount or a certain number of contracts or whatever. But make this your goal and then head out there to achieve it.

Consider gathering your employees for a company meeting. Lay out the goals in front of them. Create an incentive that goes something like this: If we can reach this level, we all get this bonus. If we reach this different level, we all get this. And so on. Hard times are good times for pooling resources. And remember that just as sure as you want to make money, your employees want to keep their jobs. (more…)